RBI announces the migration of CPFIR (FRAUD) Reporting to DAKSH

Effective from January 01, 2023, the Banks and non-bank PPI entities shall commence reporting payment frauds in DAKSH.

According to RBI circular, this reporting was earlier facilitated through Electronic Data Submission Portal (EDSP) and is being migrated to DAKSH through which scheduled commercial banks and non-bank prepaid payment instrument (PPI) issuers report payment frauds, to DAKSH from January 1, 2023. Entities may, however, continue to update and close payment frauds that were reported in EDSP until December 31, 2022. Reserve Bank shall subsequently migrate the historical data from EDSP to DAKSH”, RBI said.

‘DAKSH’ means ‘efficient’ & ‘competent’ which is a web-based end-to-end workflow application through which RBI is currently monitoring compliance requirements in a more focused manner with the objective of further improving the compliance culture in Supervised Entities (SEs) like Banks, NBFCs, etc.,

“In addition to the existing bulk upload facility to report payment frauds, DAKSH provides additional functionalities, viz. maker-checker facility, online screen-based reporting, option for requesting additional information, facility to issue alerts/advisories, generation of dashboards and reports, etc,” the RBI said in its circular addressed to the Chairman / Managing Director / Chief Executive Officers of banks, non-bank payment system operators, and credit card-issuing NBFCs.

As per RBI guidelines, the onus of submitting the reported payment fraud transactions would vest on the issuer bank, PPI issuer, or credit card-issuing NBFCs that issued payment instruments has been used in the fraud.

Regulated Entities are also required to validate the payment fraud information reported by the customer in their own systems to ensure authenticity and completeness, before reporting it to RBI on an individual transaction basis.

Further, they are required to report payment frauds (domestic and international) to Central Payments Fraud Information Registry (CPFIR), being migrated to DAKSH, within seven calendar days from the date of reporting by the customer/date of detection by the entity.

The Reserve Bank of India (RBI) operationalised the Central Payments Fraud Information Registry (CPFIR) in March 2020 with reporting of payment frauds by scheduled commercial banks and non-bank Prepaid Payment Instrument (PPI) issuers. In its circular, RBI has laid down guidelines under which all authorised Payment System Operators (PSOs) and payment system participants in India are required to report all payment frauds, including attempted incidents, irrespective of value, either reported by their customers or detected by the entities themselves. This reporting was earlier facilitated through Electronic Data Submission Portal (EDSP) and is being moved to DAKSH.